General Electric Co.
is betting the most profitable growth from the so-called “internet of things” will be in industrial supply chains. The manufacturer is plowing $1.4 billion into its software business this year, and the WSJ’s Ted Mann reports the maker of jet engines and power plants wants to dominate the market for digital goods to control major industrial operations. The company expects its California-based GE Digital business to more than double revenue to $15 billion in 2020. The investment is part of a broader race by competitors in Silicon Valley and other industrial manufacturers to develop systems that can fine-tune heavy machinery operations and avoid unplanned downtime. GE Digital Chief Executive Bill Ruh notes most attention on internet-connected devices has focused on products in the home. But, he says, “We don’t think the money is in connecting thermostats.”

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Everyone will be very, very cautious. We need to let things settle.
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